DATE: May 16, 2016
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russ Truell, Assistant City Administrator
SUBJECT:
title
Discussion of Procedure for Adopting an Increase in the Hotel/Motel Tax rate for the City of Franklin
body
Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the procedure for adopting an increase in the Hotel Tax rate and the history of the tax.
Background
At a previous work session, citizen comments were provided concerning an increase in the transient occupancy tax (hotel tax) administered by the City.
Legal Authority. Cities with hotel or motel lodgings may consider a hotel-motel tax to enhance city revenues. The proceeds from the hotel-motel tax can be used for purposes authorized in enacting ordinance, private act, or general law. Many cities designate and use the tax proceeds for tourism development; others use the proceeds in their General Fund.
"Hotel" is defined as any structure or space, or any portion thereof, which is occupied or intended or designed for occupancy by transients for dwelling, lodging, or sleeping purposes. It includes any hotel, inn, tourist camp, tourist court, tourist cabin, motel, or any place in which rooms, lodgings, or accommodations are furnished to transients for consideration. [T.C.A. ? 67-4-1401.]
Tennessee general laws provide for levying a hotel-motel tax in home rule cities and metropolitan governments. Private act chartered cities, such as Franklin, and most general law chartered cities (mayor-aldermen, manager-council, and modified manager council chartered cities) must be authorized by private act to levy the tax. There are exceptions for certain general law cities, which may levy the tax by ordinance passed by a two thirds vote of the governing body.
Action taken by City of Franklin. The City of Franklin in 1996 requested a Private Act of t...
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